Courtiers sees derivatives lead over multi-manager strategy
Courtiers Investment Services, the derivatives-based wealth management firm, has argued that multi-manager will die out as costs escalate, according to a report in FinancialAdviser magazine.
Gary Reynolds, director and chief investment officer for Courtiers, used a multi-manager strategy at the firm until February last year when he switched to using derivatives because he believes they offer a more efficient solution that is better value for money.
Reynolds said: "We feel that derivatives offer access to all the exposures we want and we can be very precise about what we want to buy. With multi-manager you are paying at every level and there is no evidence to prove that a manager who has done well in the past will do well again. Also you have to keep checking that a manager has not changed their mandate.
“I think derivatives will be favoured by the FSA in the future because they are efficient and good value," he added.
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